Morgan Creek Energy Corp.
Morgan Creek Energy Corp. Acquires Cedar Creek Lease Acreage in Conecuh County, Alabama
Corporate news transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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MORGAN CREEK ENERGY CORP. OTCBB Symbol – MCRE
Frankfurt/Berlin Symbol – M6C
WKN: AØJL4C, ISIN:US61732R1Ø77
FOR IMMEDIATE RELEASE Dallas, Texas September 12, 2006
MORGAN CREEK ENERGY ACQUIRES CEDAR CREEK LEASE ACREAGE IN CONECUH COUNTY,
ALABAMA
DALLAS, TX., Sept. 12, 2006 – Morgan Creek Energy Corp. (OTCBB: MCRE,
Frankfurt, Berlin: M6C) (the “Company”), announces that it has executed an
agreement to acquire an aggregate of 103 acres of oil and gas targeted
development leases in the Cedar Creek Field located in Conecuh County,
Alabama from U.S. Gas Systems Inc. of Mississippi for $1 million. The five
year leases are located primarily in two 160 acre sections and allow the
Company to benefit from near term cash flow from non-operated drilling
initiatives in two separate well bores scheduled to begin this fall.
The Company’s Cedar Creek Project is a leasehold position in two highly
defined drilling sites. Located in the Little Cedar Creek Field in Conecuh
County, Alabama, the acreage sits atop a Smackover Limestone gas drive
reservoir located at approximately 11,500 and 11,880 feet in depth. Midroc
Operating Company of Dallas, Texas, is the operator of the field, producing
from 32 wells as of the first of the year with 6 wells in various stages of
completion. Management estimates the field has produced 2.4MM barrels of
oil and 2 BCF of casinghead gas. The bulk of the production has been
produced in the last four years. This field has yielded only one dry hole
to date. The combination of well logs and seismic data allow geologists to
closely plot the limestone reef formation.
Wells can be drilled on 160-acre spacing units. The Company will own a
36.25% working interest and 27.18% net revenue interest (“NRI”) before well
capital cost payout in the first well scheduled to be drilled this fall on
section 24 acreage, and a 20.39% NRI after well capital cost payout. The
Company will also own a 25.0% working interest and 18.75% NRI before well
capital cost payout in a second well to be drilled on section 23 acreage,
and a 14.06% NRI after well capital cost payout.
A seismic line has been shot across the lease acreage under acquisition.
As demonstrated by the data, the structure is higher than the previous
wells and has no fault block. The higher structure may indicate potential
for greater oil accumulation in a reef environment.
Management estimates that successful drilling on the two wells on section
23 and 24 acreage could produce between 400-600 bbls of oil a day and 480
to 580 MCF/Day of gas per well bore shared between all royalty and working
interest stake holders.
Standard vertical well bores not requiring a completion frac lend to the
lease’s overall economic appeal and minimization of drilling risk.
About Morgan Creek Energy Corp.: Morgan Creek Energy Corp. is a natural
resource exploration company engaged in the acquisition and development of
strategic oil and natural gas properties worldwide. For further information
see: www.morgancreekenergy.com
Symbol: OTCBB – MCRE; Frankfurt/Berlin Symbol – M6C, WKN No.: AØJL4C; ISIN:
US61732R1Ø77
Contact North America: Investor Relations
Tel.: +1 214-321-0603
Contact Europe: International Market Trend AG
Tel.: +41-43-888-67-00
SAFE HARBOR STATEMENT
THIS NEWS RELEASE CONTAINS “FORWARD-LOOKING STATEMENTS”, AS THAT TERM IS
DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF
1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY
HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS
REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED
IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO
CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED
OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS,
INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE
SUCH WORDS AS “ESTIMATE,” “ANTICIPATE,” “BELIEVE,” “PLAN” OR “EXPECT” OR
SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES
FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH
PROPERTY DEVELOPMENT AND FUNDING AS WELL AS THE RISKS SHOWN IN THE
COMPANY’S MOST RECENT ANNUAL REPORT ON FORM 10-KSB AND ON FORM 10-QSB AND
FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE
COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL
PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE
COMPANY’S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT
ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY’S DEVELOPMENT
EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL
SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS
NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE
FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS
COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS.
ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND
INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO
ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE
ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN
AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY’S
PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES
AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES
FULL RESPONSIBILITY FOR ITS CONTENTS. EACH OF THE NASD, THE SEC AND THE
OTCBB NEITHER APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS
RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE
SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE
WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAWS OF ANY SUCH JURISDICTION.
(c)DGAP 12.09.2006
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